Effectiveness of Mobile Phone Customer Retention Strategies
Using the 419,194 customers of a mobile operator as the sample, this research investigates the effectiveness of the companys retention strategies. It examines the effect of such strategies on extending customer life cycle. We find that the retention policies and the incremental average revenue per user (ARPU) in the retention period over the month prior are positively correlated. In addition, the correlation between the retention polices and the increments of consumer consumption variables, such as the number of calls, the number of short messages and the value-added services, are also positive. Moreover, the significantly positive interaction terms between the retention bonus and the consumption increments suggest that the bonus affects the relative ARPU through the consumption variables. Finally, the retention strategies demonstrate the different effectiveness according to the three different calling plans. The managerial implications of our findings are discussed.
customer retention customer relationship customer life cycle
Jianping Peng Shaoling Zhang Jing Quan Zenghui Wei
SYSU Business School, Sun Yat-sen University, China Perdue School of Business, Salisbury University, MD, USA
国际会议
The Eleventh Wuhan International Conference on E-Business(第十一届武汉电子商务国际会议)
武汉
英文
105-112
2012-05-26(万方平台首次上网日期,不代表论文的发表时间)